Pet Industry Boom: 2020 Sales Surpass $100 Billion for First Time
Despite the many challenges that the pandemic brought to virtually every business segment during 2020, the pet industry managed to achieve an impressive milestone with total sales topping $103.6 billion for the year. This represents a historic high, according to the American Pet Products Association (APPA) State of the Industry Report released mid-March of this year.
These results represent an increase of 6.7% over 2019 retail sales of $97.1 billion. Here are some additional interesting stats on 2020 sales as reported by APPA:
- $42 billion spent on pet food and treats (9.7% increase year over year)
- $31.4 billion spent on vet care and product sales (7.2% increase)
- $22.1 billion spent on supplies, live animals and over-the-counter meds (15.1% increase)
An additional $8.1 billion was spent on other services such as grooming, dog walking and boarding — a 21.4% decline from the previous year, which is attributed to the business slowdown forced by COVID-19 lockdowns and the economy. As we slowly edge our way forward, away from the quarantines of the pandemic, the APPA predicts theses services will rise as consumers once again increase spending.
“We have reached a critical milestone, generating $103.6 billion in sales,” said Steve King, president and CEO of APPA. “We are bullish for the coming year, projecting growth of 5.8% — well above the historical average of 3% to 4%. This past year presented a host of challenges that resulted in consumers across the country turning to their pets for comfort and companionship. Interestingly, the product trends we are seeing in the pet care community mirror those of consumers — a desire for a healthier lifestyle, increased focus on fitness, turning to supplements for improved well-being and technology playing a larger role in everyday life.”
Throughout 2020, the pet industry saw supply chain disruptions due to panic buying that peaked in March to May 2020. However, once panic buying slowed and supplies were then able to normalize, sales continued to soar. This continued increase in pet owner spending is attributed to the fact pet owners, many of whom were forced to continue to work from home, continued to spend a lot of that time at home with their pets.
Predicted Growth for 2021
As the pandemic wanes and consumers get back to normal, APPA is projecting a 5.8% industry increase for 2021, with estimated total sales of $109.6 billion – welcome news for those looking to join the pet service market. APPA expects growth across all pet industry categories. Other findings from the APPA report include:
- Pet specialty and independent retailers experienced solid growth.
- 30% of pet owners spent more on their pet/pet supplies in the past year with only 10% saying they spent less.
The pet industry was already growing pre-pandemic, as more and more Americans become pet owners. However, the mandatory quarantines and alternate workspaces forced many to re-evaluate their work/life balance. For an increasing number of individuals, this self-reflection fueled the pet industry growth as many Americans recognized a need for companionship and looked to fill that void with a pet. There is no better time to join the pet industry! Why not join the fastest growing franchise opportunity with multiple revenue streams?
If you are interested in learning more about how we can help you achieve your dream of owning your own business and get in on the booming pet industry, please download a copy of our free Franchise Report. Inside this report you will learn more about what Splash and Dash has to offer and what makes us a great franchise business opportunity.